Monday June 29, 2009
HONG KONG: Asian currencies ended the week mostly higher against the dollar after the US Federal Reserve maintained its stimulative monetary policy aimed at lifting the US economy out of recession.
JAPANESE YEN: The yen gained ground this week as the dollar faced selling pressure on expectations that US interest rates will remain low for some time, dealers said. The Japanese currency stood at 95.22 against the dollar in New York late Friday, compared with 96.31 a week earlier.
Lower US bond yields reduced demand for the greenback, dealers said. Investors tend to favour currencies offering higher returns. "The dollar faced selling, reflecting drops in long-term interest rates," said Yuji Saito, forex head at Societe Generale. The market continued digesting Wednesday's decision by the US Federal Reserve to leave its stimulative monetary policy unchanged, giving no sign that it was preparing to scale back its pump-priming measures.
The yen also benefited from safe haven flows after the World Bank on Monday sapped hopes that the global economy would show real signs of strength in the near future. "Investors exited high-yielding global growth sensitive currencies like the Australian and New Zealand dollars in favour of the 'safe haven' yen and US dollar," wrote NAB Capital strategist John Kyriakopoulos in a note to clients.
In times of economic uncertainty the yen and dollar are considered safer for investors who are more risk averse. But the yen's gains remained limited as Japanese consumer prices logged a record fall last month.
Analysts said the prospect of another prolonged bout of deflation in the world's second largest economy increased the chances of Japanese interest rates remaining low for some time, potentially reducing the appeal of the yen. The market is now waiting for the release next week of key US jobs data, dealers said.
AUSTRALIAN DOLLAR: The Australian dollar ended the week little changed, with positive economic news prompting a rally from earlier weakness, dealers said. The commodities-based Aussie closed Friday at 80.45 US cents, the same level as the previous week, after dipping to 78 cents in early trade. "The Australian dollar started the week on a soft note thanks to worries about the global growth outlook which put pressure on commodity prices," said AMP Capital Investors chief economist Shane Oliver.
"But as better economic data came through both commodity prices and the dollar recovered to be little changed," he said. Oliver said the Aussie was going through a period of correction, but was likely to remain broadly strong as commodity prices firmed and share markets recovered. In the short-term, local retail sales and building approvals data, due Wednesday, were likely to trigger a surge in the currency towards 85 US cents, said ANZ economist Amber Rabiniov. "However, the choppy nature of these data could mean that any impact is muted," she said.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 64.50 US cents, up from 63.85 the previous week. The kiwi moved in a range of around two US cents during the week, responding to moves in the US currency and the fortunes of equity markets.
News Friday that the New Zealand economy shrank one percent in the March quarter in its fifth consecutive quarterly contraction knocked nearly half a cent off the local currency but it recovered to be little changed. On Thursday, figures showing that the annual current account deficit declined in the March quarter to 15.25 billion dollars (9.76 billion US), amounting to 8.5 percent of gross domestic product, had little impact.
CHINESE YUAN: The yuan closed at 6.8338 to the dollar Friday, compared with Thursday's close of 6.8347 and a closing price of 6.8362 the week before. The central bank had set the yuan central parity rate at 6.8328 to the dollar Friday, compared with 6.8331 on Thursday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong unit ended the week unchanged at 7.751.
INDONESIAN RUPIAH: The rupiah ended at 10,270 to the dollar, up from 10,390 the week before.
PHILIPPINE PESO: The Philippine peso rose to 48.305 to the dollar on Friday afternoon from 48.400 on June 19.
SINGAPORE DOLLAR: The dollar was at 1.4548 Singapore dollars Friday from 1.4565 the week before.
SOUTH KOREAN WON: The South Korean currency further weakened to 1,284.30 won to the dollar from 1,268.40 won a week earlier, as overseas players bought the greenback amid unstable global stock markets and concerns over North Korea's nuclear and missile programmes. Dealers said the won was likely to trade within a narrow range of around 1,280 to the dollar in the coming week. South Korea logged a current account surplus for the fourth straight month in May as imports fell faster than exports during the ongoing global economic slump, the central Bank of Korea said Friday.
The current account surplus stood at 3.63 billion dollars in May, compared with 4.25 billion dollars a month earlier.
TAIWAN DOLLAR: The Taiwan dollar closed at 32.925 against the US dollar, down from 32.878 a week earlier.
THAI BAHT: The baht rose against the dollar over the past week in moderate trading because of gains in the stock market and in line with other regional currencies, dealers said. The Thai unit closed Friday at 34.05-07 to the dollar compared with the previous week's close of 34.13-15.
(AFP)
HONG KONG: Asian currencies ended the week mostly higher against the dollar after the US Federal Reserve maintained its stimulative monetary policy aimed at lifting the US economy out of recession.
JAPANESE YEN: The yen gained ground this week as the dollar faced selling pressure on expectations that US interest rates will remain low for some time, dealers said. The Japanese currency stood at 95.22 against the dollar in New York late Friday, compared with 96.31 a week earlier.
Lower US bond yields reduced demand for the greenback, dealers said. Investors tend to favour currencies offering higher returns. "The dollar faced selling, reflecting drops in long-term interest rates," said Yuji Saito, forex head at Societe Generale. The market continued digesting Wednesday's decision by the US Federal Reserve to leave its stimulative monetary policy unchanged, giving no sign that it was preparing to scale back its pump-priming measures.
The yen also benefited from safe haven flows after the World Bank on Monday sapped hopes that the global economy would show real signs of strength in the near future. "Investors exited high-yielding global growth sensitive currencies like the Australian and New Zealand dollars in favour of the 'safe haven' yen and US dollar," wrote NAB Capital strategist John Kyriakopoulos in a note to clients.
In times of economic uncertainty the yen and dollar are considered safer for investors who are more risk averse. But the yen's gains remained limited as Japanese consumer prices logged a record fall last month.
Analysts said the prospect of another prolonged bout of deflation in the world's second largest economy increased the chances of Japanese interest rates remaining low for some time, potentially reducing the appeal of the yen. The market is now waiting for the release next week of key US jobs data, dealers said.
AUSTRALIAN DOLLAR: The Australian dollar ended the week little changed, with positive economic news prompting a rally from earlier weakness, dealers said. The commodities-based Aussie closed Friday at 80.45 US cents, the same level as the previous week, after dipping to 78 cents in early trade. "The Australian dollar started the week on a soft note thanks to worries about the global growth outlook which put pressure on commodity prices," said AMP Capital Investors chief economist Shane Oliver.
"But as better economic data came through both commodity prices and the dollar recovered to be little changed," he said. Oliver said the Aussie was going through a period of correction, but was likely to remain broadly strong as commodity prices firmed and share markets recovered. In the short-term, local retail sales and building approvals data, due Wednesday, were likely to trigger a surge in the currency towards 85 US cents, said ANZ economist Amber Rabiniov. "However, the choppy nature of these data could mean that any impact is muted," she said.
NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 64.50 US cents, up from 63.85 the previous week. The kiwi moved in a range of around two US cents during the week, responding to moves in the US currency and the fortunes of equity markets.
News Friday that the New Zealand economy shrank one percent in the March quarter in its fifth consecutive quarterly contraction knocked nearly half a cent off the local currency but it recovered to be little changed. On Thursday, figures showing that the annual current account deficit declined in the March quarter to 15.25 billion dollars (9.76 billion US), amounting to 8.5 percent of gross domestic product, had little impact.
CHINESE YUAN: The yuan closed at 6.8338 to the dollar Friday, compared with Thursday's close of 6.8347 and a closing price of 6.8362 the week before. The central bank had set the yuan central parity rate at 6.8328 to the dollar Friday, compared with 6.8331 on Thursday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.
HONG KONG DOLLAR: The US-pegged Hong Kong unit ended the week unchanged at 7.751.
INDONESIAN RUPIAH: The rupiah ended at 10,270 to the dollar, up from 10,390 the week before.
PHILIPPINE PESO: The Philippine peso rose to 48.305 to the dollar on Friday afternoon from 48.400 on June 19.
SINGAPORE DOLLAR: The dollar was at 1.4548 Singapore dollars Friday from 1.4565 the week before.
SOUTH KOREAN WON: The South Korean currency further weakened to 1,284.30 won to the dollar from 1,268.40 won a week earlier, as overseas players bought the greenback amid unstable global stock markets and concerns over North Korea's nuclear and missile programmes. Dealers said the won was likely to trade within a narrow range of around 1,280 to the dollar in the coming week. South Korea logged a current account surplus for the fourth straight month in May as imports fell faster than exports during the ongoing global economic slump, the central Bank of Korea said Friday.
The current account surplus stood at 3.63 billion dollars in May, compared with 4.25 billion dollars a month earlier.
TAIWAN DOLLAR: The Taiwan dollar closed at 32.925 against the US dollar, down from 32.878 a week earlier.
THAI BAHT: The baht rose against the dollar over the past week in moderate trading because of gains in the stock market and in line with other regional currencies, dealers said. The Thai unit closed Friday at 34.05-07 to the dollar compared with the previous week's close of 34.13-15.
(AFP)
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